NT Reporter
Panaji
The state government on Friday moved to boost air connectivity by cutting the value added tax (VAT) on aviation turbine fuel (ATF) to 7 per cent from 15 per cent previously.
The revised tax rate is applicable from October 24, said the notification issued by the Finance Department.
Airlines, airports and tourism stakeholders have welcomed the reduction.
In a post on X, Indigo thanked Chief Minister Pramod Sawant for the progressive decision to rationalise the VAT on the fuel used for powering aircraft engines.
The cut will support the aviation ecosystem, enhance air connectivity.
It will also help strengthen the state’s tourism sector, said the airline.
For commercial airlines, ATF is the single largest component of the operating expense.
Hailing the VAT reduction, Manohar international airport (MIA), Mopa, said on X that the move is expected to increase not only the air passenger footfall in Goa but also boost the tourism industry.
“The support extended by the state to the aviation industry was the need of the hour, given the turbulence in the industry,” said the MIA post.
Local tourism stakeholders also approved of the decrease in the VAT rate, pointing out that it will enhance air connectivity coming on the heels of airlines announcing increased flights to the state for the winter schedule. The cut is likely to result in flight tickets becoming cheaper for inbound and outbound airline travel in the state, according to stakeholders.
VAT on ATF in Goa was previously 8 per cent, for a long time. On April 1, 2024, however, the state government hiked the rate to 15 per cent, much to the disappointment of tourism industry stakeholders.
Goa’s VAT cut is in the wake of Maharashtra and Delhi also lowering the rate to 7 per cent.
